This paper studies the implications of monopsony power for optimal income taxation and welfare. Firms observe workers' abilities while the government does not and monopsony power determines what share of the labor market surplus is translated into profits. Monopsony power increases the tax...

This paper studies the implications of monopsony power for optimal income taxation and welfare. Firms observe workers' abilities while the government does not and monopsony power determines what share of the labor market surplus is translated into profits. Monopsony power increases the tax...

This chapter examines government policy alternatives for protecting the environment. We compare environmentally motivated taxes and various non-tax environmental policy instruments in terms of their efficiency and distributional impacts. Much of the analysis is performed in a second-best setting...

We examine economic growth, inequality and education when the wellspring of growth is the formation of human capital through a combination of the quality of child-rearing and formal schooling. The existence of multiple steady states is established, including a poverty trap, wherein children work...

This paper views teacher quality through the human capital perspective. Teacher quality exhibits substantial growth over teachers' careers, but why it improves is not well understood. I use a human capital production function nesting On-the-Job-Training (OJT) and Learningby- Doing (LBD) and...

This dissertation is a contribution to the theoretical foundation of optimal tax codes in models with human capital formation. From the economic point of view, a tax system should generate the government’s required revenue with as little economic distortion as possible. In the literature this...